CLA-2-94:OT:RR:NC:N4:433
Elizabeth McGuffin
Customs Manager
Dollar General
100 Mission Ridge
Goodlettsville, TN 37072
RE: The tariff classification of “gondola display” components from China.
Dear Ms. McGuffin:
In your letter dated October 25, 2017, you requested a tariff classification ruling. Illustrative literature of the components was provided, along with two photographs of the floor standing display racks. The five items identified below are all components of gondola floor display (rack) units and will not be imported together at one time. All of the components are made of 100% iron and painted.
SKU # 20318001 is described as the “Gondola Endcap Kickplate. This item attaches to the base of the rack unit.
SKU # 20387801 is described as the “Gondola Conversion Clip Kit.” This item changes the end upright panel to a center upright panel.
SKU # 20317601 is described as the “Gondola Top Panel Retainer.” This item holds uprights together across the top of the peg panel.
SKU # 20288501 is described as the “Gondola Upright Extender.” This item is used to add another panel to a rack and acts as an extender brace.
SKU # 20288401 is described as the “Gondola Deck Slantnose.” This item is a shelf for the rack.
We note be means of internet research on the merchandise concerned that gondola displays, gondola display units, gondola shelving, gondola shelving units, gondola display racks, and gondola racks are all terms used to describe floor standing and wall mounted furniture used for holding and displaying various kinds of objects. The racks range from simple metal frames with shelves to elaborate configurations using combinations of various composite materials, such as metal, glass, plastic, wood, as well as having electronic components such as lighting and sound. Depending on the type of gondola rack, additional racks can be attached, including end display units, with various types of shelving used, such as solid shelving, wire shelving, basket shelving, glass shelving, etc.
To this end, each gondola display rack(s) must be viewed on a case-by-cases basis to determine whether the gondola display rack(s) fall within the meaning of [unit furniture] as defined in the United States Court of International Trade (USCIT), STOREWALL, LLC v. UNITED STATES, Slip Op. 09-146, Court No. 05-00462 dated December 18, 2009; and reaffirmed by the United States Court of Appeals for the Federal Circuit (USCAFC), STOREWALL, LLC v. UNITED STATES, 2010-1193 dated March 31, 2011; and reaffirmed by the USCIT, THE CONTAINER STORE v. UNITED STATES, Slip Op. 11-135, Court No. 05-00385 dated October 26, 2011; and reaffirmed by the USCIT, THE CONTAINER STORE v. UNITED STATES, Slip Op. 16-6, Court No. 09-00327 dated January 21, 2016; and reaffirmed by the USCAFC, THE CONTAINER STORE v. UNITED STATES, 2016-1666, dated July 18, 2017.
In “storeWALL,” LLC versus the United States, Slip Op. 09-146, Court No.05-00462 dated December 18, 2009, the USCIT, using relevant sources derived the following meaning for the term unit furniture: An item (a) fitted with other pieces to form a larger system or which is itself composed of smaller complementary items, (b) designed to be hung, or fixed to the wall, or stand one on the other or side by side, (c) assembled together in various ways to suit the consumer’s individual needs to hold various objects or articles, and (d) excludes other wall fixtures such as coat, hat and similar racks, key racks, clothes brush hangers, and newspaper racks. Further, the USCAFC, in storeWALL, LLC versus the United States, 2010-1193, not only upheld the meaning of unit furniture as defined by the CIT, but also added that unit furniture may be assembled together in various ways to suit the consumer’s individual needs to hold various objects and articles, and it was this versatility and adaptability that was the essence of unit furniture.
For purposes of review, we undertook an inspection of the two photographs of the floor standing display racks in conjunction with several other photographs of Dollar General’s display racks as found on various internet websites. The review of the photographs indicated side-by-side (juxtaposed) placed racks, with some photographs of the racks containing end display rack units at right angles to the linear configured side-by-side display racks. All of the photographs of the display racks were depicted with metal shelving, and some of the photographs have combinations of wire shelves, pegboards, hooks or hanging displays. It is our position that Dollar General’s {gondola display racks} as depicted in photographs fall within the meaning of unit furniture as derived by the USCIT and affirmed by the USCAFC, in that the display racks stand side-by-side to each other, as well as can be squared off by means of end units, and are assembled together forming different arrangements, thereby forming larger systems for display of product.
Accordingly, we turn our attention to the components of the merchandise concerned to determine whether they are parts of unit furniture or separately presented elements of unit furniture, for purposes of providing the proper HTSUS classification numbers. Separately presented elements of unit furniture are not classified as parts of furniture in subheadings 9401, 9402 and 9403, but rather as finished articles of furniture based on composition under their applicable subheadings.
When interpreting and implementing the Harmonized Tariff Schedule of the United States (HTSUS), the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General Explanatory Notes (ENs) to Chapter 94 of the HTSUS state with regard to the meaning of furniture, at: (B) that furniture includes the following: (i) Cupboards, bookcases, other shelved furniture and unit furniture designed to be hung, to be fixed to the wall or to stand one on the other or side by side, for holding various objects or articles (books, crockery, kitchen utensils, glassware, linen, medicaments, toilet articles, radio or television receivers, ornaments, etc.) and separately presented elements of unit furniture; and (ii) Seats or beds designed to be hung or to be fixed to the wall.
Observation of the photographs of the components of the merchandise concerned indicates that the Gondola Endcap Kickplate, the Gondola Conversion Clip Kit, the Gondola Top Panel Retainer, and the Gondola Upright Extender are not separately presented elements of unit furniture, but rather are parts of the structure of the gondola display racks. The Gondola Endcap Kickplate forms part of the base deck, along with base end trim; the Gondola Conversion Clip Kit converts an end upright to a center upright; the Gondola Top Panel Retainer hold uprights together across the top of the peg panel; and the Gondola Upright Extender not only adds another panel to the display rack, but also fulfills the meaning of unit furniture by expanding the system; all of these components are regarded as essential parts of the structure for gondola display racks, even if some of the components are not used in one system over that of another system incorporating all of these components. It is our position that the Gondola Deck Slantnose, shelf, is a separately presented element of unit furniture, for other than mounting brackets to be attached to the shelf, no other parts are needed in the forming of the shelf.
The applicable subheading for the Gondola Endcap Kickplate, the Gondola Conversion Clip Kit, the Gondola Top Panel Retainer, and the Gondola Upright Extender, will be 9403.90.8041, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other furniture and parts thereof: Parts: Other: Other: Other: Of metal: Other.” The rate of duty will be free.
The applicable subheading for the Gondola Deck Slantnose, shelf, will be 9403.20.0026, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and part thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division